FXI Dividend Type Payments
Although FXI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares China Large-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
iShares China Large-Cap ETF (FXI) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
33.44 | 33.45 | 33.42 | +1.74 | 118M | - | 6.1B |
FXI Dividend-Like Income Using Covered Calls
With FXI at 33.42, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
Annual Yield | Annual Premium | Cents/Day |
---|---|---|
3% | 1.00 | 0.3 |
5% | 1.67 | 0.5 |
10% | 3.34 | 0.9 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
3% Yield On FXI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 6 | 33.50 | 1.22 | 30 | 4.1 | 0.05 (0.1%) | |
Dec 13 | 33.50 | 0.83 | 37 | 2.2 | 0.05 (0.1%) |
5% Yield On FXI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 6 | 33.50 | 1.22 | 30 | 4.1 | 0.05 (0.1%) | |
Dec 13 | 33.50 | 0.83 | 37 | 2.2 | 0.05 (0.1%) |
10% Yield On FXI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 6 | 33.50 | 1.22 | 30 | 4.1 | 0.05 (0.1%) | |
Dec 13 | 33.50 | 0.83 | 37 | 2.2 | 0.05 (0.1%) |
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Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | FXI dividend | 6. | IWM dividend | 1. | RDFN dividend | |
2. | NVDA dividend | 7. | TLT dividend | 2. | AFRM dividend | |
3. | SLV dividend | 8. | TSLA dividend | 3. | DKNG dividend | |
4. | SPY dividend | 9. | XLF dividend | 4. | PINS dividend | |
5. | EEM dividend | 10. | EWZ dividend | 5. | IOVA dividend |
Want more examples? FXH Dividend | FXL Dividend